On today’s show… Ford gets ready to axe white collar workers… diesel pollution is worse than expected… and you’ll be staggered to learn how much taxes states collect on cars. All that and more coming right up on Autoline Daily.

This is Autoline Daily the show for enthusiasts of the automotive industry.

FORD SHARPENS THE AXE
Last week we reported that Ford’s CEO Mark Fields is under pressure from the board of directors to do things that will boost the price of the company’s stock. Now Reuters is reporting that Ford might get rid of 10% of its salary workforce in North America and Asia. They will be offered buyouts as part of a plan to cut costs by $3 billion a year.

Here’s our Autoline Insight. We think that Ford could be getting ready to get rid of 3,000 to 5,000 employees. If it really has this much fat to cut, or if it’s preparing for a downturn, than this is a good move. Hopefully, it’s not just a knee jerk reaction to placate investors, because Ford is not going to attract high-tech workers to work on autonomous and electrified cars if they think they could face layoffs in the future. No matter what the company does it can’t seem to placate the investment community. As we pointed out last week, Ford stock already has the highest price-to-earnings ratio of any car company in the world. We also expect the company to announce some production cuts. In the U.S. market Ford has five product lines with over 90 days of inventory including the Mustang, Taurus, Fiesta, Fusion, F-series and Transit Connect.

Ford’s Highest Inventory Levels

Model

Assembly Plant

Day’s Supply

Mustang

Flat Rock, MI

90

Taurus

Chicago, IL

90

Fiesta

Cuautitlan, MX

95

Fusion

Hermosillo, MX

97

F-Series

Michigan, Kansas, Kentucky

98

Transit Connect

Valencia, SP

132

CARS & TAXES
The reason why Ford’s possible layoffs makes the national news is that the auto industry is so important to the economy. Here’s a great example. Ward’s Auto compiled all the taxes that U.S. states collect on vehicles. This includes the state sales tax on new and used cars, it includes the taxes on fuel, on licenses and on vehicle operators. Add it all up and it comes to $928 billion a year. That’s a lot of shekels!

Coming up next, Continental wants to transform the dashboard with 3D displays.

CONTINENTAL’S 3D IP
If you work in the industry and are looking for something unique to set off an interior, here’s a new instrument cluster that caught our eye. Supplier Continental developed a new digital cluster with a 3D display surface. It features what Continental calls optically bonded, topographical elements or in other words it gives the elements more depth to seem like they stick out from the surface of the display. It’s able to integrate a number of features into the cluster, including driver assist systems, like pedestrian detection. It reminds me a bit of Audi’s Virtual Cockpit, but with more of a 3D element added to its other features.

FAURECIA JUMPS ON THE HYDROGEN BANDWAGON
The supplier Faurecia is known for its interior solutions, especially seating, but it now has the ambition to become a leading supplier in fuel cell technology as well. It says by 2035 there could be as many as 5 million fuel cell vehicles in production and to help support that, Faurecia is going to start making fuel cell tanks. It has teamed up with STELIA Aerospace Composites to design, industrialize and commercialize high pressure hydrogen tanks made of carbon fiber. Some of you may think that carbon fiber is not strong enough to withstand the 10,000 p.s.i. that hydrogen is stored at, but these tanks are able to take a direct shot from a 50-cal rifle without being ripped to shreds.

Coming up next, both Audi and Volvo are working on integrating Android’s operating system into their vehicles.

ANDROID INSIDE
Most new vehicles offer Apple CarPlay and Android Auto, which syncs smartphones to the car, to allow the driver access to some of the phone’s features through the car’s infotainment system. But now Audi is cutting out the middleman so to speak and has integrated Android’s operating system into the Q8 sport concept. The functions are displayed on the car’s touchscreen and info is also visible in Audi’s Virtual Cockpit instrument cluster. The car still features Audi’s map system but drivers can choose to use Google Maps for navigation instead. Audi is experimenting with Android because it’s the most popular platform in the world and it’s open source which means new apps can be more quickly developed.

VOLVO ADOPTS ANDROID
But it’s not just Audi, Volvo also announced its next-generation of infotainment systems and connectivity services will be based on Android. It says it will show up in new cars within the next two years.

DON’T DRINK THE WATER AND DON’T BREATHE THE AIR
Uh-oh, diesel pollution is far worse than we thought. A new study published in the journal Nature found that globally pollution from diesel powered vehicles is 50% higher than government tests show. This resulted in 38,000 extra deaths from soot and smog in 2015. The researchers don’t believe automakers are to blame, rather they say governments need to improve testing procedures, so tests better reflect real-world driving conditions.

But that wraps up today’s show, thanks for watching and please join us again tomorrow.

Thanks to our partner for embedding Autoline Daily on its website: WardsAuto.com

I was part of Delphi’s getting rid of 10% of their salary work force in 2001. It was partly to reduce head count, but also, to make room for some younger engineers who might be a better fit for then-emerging technologies. There may be some of that going on at Ford. Those big inventories on core products like F series and Fusion don’t sound good, though.

3, 4
I suspect tbe Europeans, at least in cities, are starting to realize that they need diesel emissions standards more like the U.S. standards. Test procedures that would better reflect “real world” emissions would help.

Hydrogen tanks are made to very strong to give an extra margin of safety. But think about it, do you really what to be seating next to 2 cylinders at 10,000 psi in a car that at some point could be involved in an accident? What if it catches on fire? There is supposed to be a valve on the tank to release Hydrogen before the tank explodes, but what they do not tell you is that release becomes a blowtorch. What if you are trapped in the car? Is your local fire department equipped to fight a Hydrogen fire? In most cases they will have wait for it to burn itself out.

Ford took it’s eye off the ball when it restarted Lincoln. Alan Mulally refocused Ford on the idea of Ford One. Ford One re-energized the core business which strengthened the company and prevented the need for a US Government Bailout. Mark Fields needs to redirect Ford’s focus back to Ford One. Lincoln Brand should be jettisoned forever and concentrate on autonomous driving vehicles and battery technology for the masses.

I agree with # 9 George Ricci. Hydrogen should be used to generate electricity for EV’s. Natural Gas and Propane are other alternative fuels to be used which are readily accessible to the general public.

@ Kit: I agree,and disagree.Gassers nowadays,with proper maintenance can go 200K miles or more before rebuild or replacement.

Diesels on the other hand,although have higher comp ratios,turn a lot less rpms to get to full power,even less to get to full torque.They can go,again with proper maint,easily 500K miles before teardown.

But on the diesel emissions equip.Wow,that is scary high to fix/replace.

16 @G.A.
I’m talking about car diesels. Tbe 2.2 four cylender in my friend’s Sunfire is going strong at 240K, and could easily go 300K or fartber. I doubt if the VW, PSA, Euro Ford or other four cylinder car diesels do much, or any better.

I assume the diesels used in “HD” pickups would last longer than “ecobooost” V6′s and Chevy gas V8′s if used for heavy towing. As you say, though, the diesel emissions stuff is crazy complex. Also, routine maintenence on the diesels is more expensive, with lots of oil, special fuel filters, etc.

@G.A. – I’m in the process of getting the bike to my place, taking detailed pictures and coming up with a list of bit and pieces I’m going to need. I hope to start in on the project in the next few months as I finish up other projects that I need to get done first.

#1. David, that study from UC Riverside found that charbroiling one hamburger emits more particulates than driving a semi-truck for 143 miles. Particulates, especially 2.5 PM, is nasty stuff that gets deep in your lungs and can cause cancer.

@ Kit: Oil changes for diesels.Yes,they hold more oil.Filters,all the oil and fuel filters are cross referenced with genuine Caterpillar filters,which are a lot less expensive.One of my sons builds and tests 8K hp diesels for cat.

Sean: Cool.Don’t forget,when you start,make sure you have the shop manual.Also,don’t go to an authorized Harley dealer to buy ANYTHING for your pan project.They couldn’t find their ass with a roadmap when it comes to old iron.

If you know any bikers,(not weekend warriors/wallet riders), find out what outlaw shop they buy their parts at.That’s where you want to go.They are the ‘real’ bike shops.

@ Kit: Harley has sunk to the bottom with a cloths only dealership.Wow,what a shame. Back in the 90′s I was blackballed by the factory from buying new bikes,that I paid cash for.I’d ride them for a bit to see how they were,then sold them down south.I paid them what they wanted,and sold them for about 2.5k more,depending on model/options etc.